“Where the university takes the risk, it`s easy to see why investors and lenders would like to invest – this is a reliable deal; contracts can last for 25 years and guarantee the rent of the beds regardless of fluctuations in demand. “Historically, student residence has not been the subject of a planning gain requirement through affordable housing, although we have recently seen that the trend has reversed in Southwark, which has imposed an affordable housing requirement on a recently implemented program. The return at Direct Lets (excluding university agreement) is estimated at around 5% in London and slightly higher in major cities outside the capital, including Bristol, Manchester and Birmingham. The relationship between universities and specially built housing can vary. The university may enter into an appointment agreement with the provider in order to send a minimum number of students to the accommodation each year. In return, the university is a certain commitment in areas such as rent setting and management. If there is no relationship between the supplier and the university and the supplier does not provide, the university is in a difficult position. He has a duty of care towards his students, but he also has little power over the behavior of the provider. We understand legal issues relating to student accommodation as an asset class, including management and leasing, planning and taxation, but also business issues such as design/space/accessibility and void risk and the impact this can have on legal affairs. We have advised private equity investors and Islamic investors in the Middle East on a series of major UK student housing investment deals. Another alternative could be that housing must reach a certain stage of development before being tendered or that clearer plans are available in the event of a delay in completion. These requirements can be enforced through a planning obligation or an agreement. The appointment agreement offers the university a specific access opportunity for its students and offers it a promised income for a given period, usually a period of five years.

Although it is predominant for an agreement up to 25 years and beyond if there is a commitment to new development. In accordance with the terms of the appointment agreement, the Bath Group portfolio (354 beds in total for the 2016/2017 academic year) will be leased to students made available by the University of Bath, which will guarantee 100% of the annual available accommodation fee (the “Annual Fee”) for the duration of the Appointment Agreement. The annual fee agreed at current market prices is subject to an annual increase of between 2 and 5% with regard to the retail price index. Appointment agreements are concluded between the university and the accommodation institution, the agreement being to designate a minimum number of students for accommodation each year and for an agreed period, in order to obtain some control over rents and certain business affairs. We have worked for a number of clients who have purchased either residential development sites or sites with existing residences. A secure revenue stream is the key to the viability of the halls and this has been achieved through an appointment agreement with a university or higher education provider. Our work includes “off-balance sheet” transactions and the first student residence activity financed by loans of this type…